Texto para Discussão, Instituto de Pesquisa Econômica Aplicada (IPEA) 2084
In this paper we discuss the evolution of labor productivity in the formal, informal and other households units sectors disaggregated by economic activity. Based on a modified shift-share that deals with the loss of additivity problem, we found that aggregate productivity grew 7% between 2001 and 2009 due to the formal sector - once informal activities contributed negatively - and positive contributions of productivity within activities (direct effect) and from occupation's composition (occupation effect). By excluding activities with high share of non-mercantile and imputed in total production, we found different results: aggregate productivity growth was only 2.2%, lower positive contribution from the formal sector, negative direct effect and positive occupation effect. Thus, it is urgent to adopt public policies in order to reduce informality and to promote a structural change in favor of higher added value activities.
labor productivity formal and informal sectors national accounts